Due to rising mining profitability, recovering prices for crypto assets, and dramatic rises in Bitcoin (BTC) production, cryptocurrency mining companies have experienced a 120% spike in the price of their stocks over the past month, as reported by Cointelegraph.
According to statistics from Yahoo Finance, the stock prices of crypto mining businesses Marathon Digital Holdings, Core Scientific, Hut 8, and Riot Blockchain have all skyrocketed upward over the past 30 days, outpacing the prices of BTC (18.0%) and Ether (67.8%) assets.
Some of the major crypto mining companies such as Marathon Digital Holdings (NASDAQ: MARA), Riot Blockchain (NASDAQ: RIOT), Hut 8 (NASDAQ: HUT), and Core Scientific (NASDAQ: CORZ), increased their share price over the past 30 days by 124.12%, 96.69%, 98.95%, and 110.39% respectively.
It seems that crypto mining stocks were deep in oversold territory, and the rally seen over the past month could be attributed both to a rebound from those levels coupled with a rally in crypto initiated mostly by Ethereum (ETH) as it nears its transition to proof-of-stake (PoS) network.
An increase in Bitcoin (BTC) mining seemed to have happened across the board with the above-mentioned companies.
It looks like crypto mining stocks are rallying from oversold regions, indicating that the price action we are experiencing today is a rebound from these regions. Despite the new bullish price action, these stocks are still down in terms of Year-to-Date (YtD) performance, with the least posting a negative YtD return of 48%.
In a Q2 results filing on Aug. 11, Core Scientific reported a staggering 1601% increase in self-mined Bitcoin year-to-date, reaching 6,567 Bitcoin. Q2 revenue rose 118% year-on-year to $164 million, driven by increases in digital mining revenue and hosting revenue.
Hut 8 also saw its mined Bitcoin increase in the quarter, up 71% compared to the prior-year period to a total of 946 mined Bitcoin due to what the company described as "an increase in hash rate from additional highly efficient miners" and ramping of activities at its Ontario mining site. Its revenue also increased in Q2, rising 30.7% year-on-year to $43.8 million.
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